STATE OF NEW YORK ________________________________________________________________________ 984 2023-2024 Regular Sessions IN ASSEMBLY January 11, 2023 ___________ Introduced by M. of A. MAGNARELLI -- read once and referred to the Committee on Labor AN ACT to amend the labor law, in relation to clarifying provisions related to a registration system for contractors and subcontractors engaged in public work and covered projects; and to amend a chapter of the laws of 2022 amending the labor law relating to establishing a registration system for contractors and subcontractors engaged in public work and covered projects in order to better enforce existing labor laws and regulations in the public works industry, as proposed in legislative bills numbers S. 5994-C and A. 1338-C, in relation to the effectiveness thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivisions 1, 2, 3, 4, 5 and 6 of section 220-i of the 2 labor law, as added by a chapter of the laws of 2022 amending the labor 3 law relating to establishing a registration system for contractors and 4 subcontractors engaged in public work and covered projects in order to 5 better enforce existing labor laws and regulations in the public works 6 industry, as proposed in legislative bills numbers S. 5994-C and A. 7 1338-C, are amended to read as follows: 8 1. As used in this section: 9 a. "Contractor" means any [contractor or subcontractor] entity enter- 10 ing into a contract to perform construction, demolition, reconstruction, 11 excavation, rehabilitation, repair, installation, renovation, alter- 12 ation, or custom fabrication, which is subject to the provisions of this 13 article. 14 b. ["Bureau" means the department's bureau of public works] "Subcon- 15 tractor" means any entity subcontracting with a contractor to perform 16 construction, demolition, reconstruction, excavation, rehabilitation, 17 repair, installation, renovation, alteration, or custom fabrication, 18 which is subject to the provisions of this article. 19 c. "Covered project" means any project subject to the provisions of 20 this article, including but not limited to, public work projects and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04023-01-3
A. 984 2 1 those subject to the provisions of sections two hundred twenty-four-a 2 and two hundred twenty-four-d of this article. 3 2. a. [Prior to submitting a bid on a contract for public work or 4 commencing work on a covered project under private contract] In accord- 5 ance with subdivision six of this section, a contractor or subcontractor 6 shall register in writing with the [bureau] commissioner on a form 7 provided by the commissioner. The form shall require the following 8 information: 9 i. The name, principal business address and telephone number of the 10 contractor or subcontractor. 11 ii. Whether the contractor is a person, partnership, association, 12 joint stock company, trust, corporation, or other form of business enti- 13 ty. 14 iii. The name and address of each person with [a financial] an owner- 15 ship interest in the contractor or subcontractor and the percentage 16 interest, except that if the contractor or subcontractor is a publicly- 17 traded corporation, the contractor or subcontractor shall supply the 18 names and addresses of the corporation's officers. 19 iv. The contractor's or subcontractor's tax identification number, 20 unemployment insurance registration number, and workers' compensation 21 board [employee] employer number. 22 v. Whether the contractor or subcontractor has any outstanding wage 23 assessments against it, pursuant to this article. 24 vi. Whether the contractor or subcontractor has been debarred under 25 New York or federal law within the last [ten] eight years. 26 vii. Whether the contractor or subcontractor has been debarred pursu- 27 ant to the laws of any other state within the last [ten] eight years. 28 viii. Whether the contractor or subcontractor has been finally deter- 29 mined by the appropriate authority to have violated any labor laws or 30 employment tax laws including, but not limited to, the requirement to 31 have workers' compensation coverage, payment of workers' compensation 32 premiums, deduction and payment of income taxes, payment of unemployment 33 insurance contributions or payment of prevailing wage. 34 ix. Whether the contractor or subcontractor has been finally deter- 35 mined by the appropriate authority to have violated any laws establish- 36 ing workplace safety standards including the federal Occupational Safety 37 and Health Act. 38 x. Whether or not the contractor or subcontractor is associated, or a 39 signatory to, an apprenticeship program under article twenty-three of 40 this chapter. If so, the apprenticeship program shall be provided by the 41 contractor or subcontractor. 42 xi. Whether or not the contractor or subcontractor is a minority or 43 women-owned business enterprise pursuant to the provisions of article 44 fifteen-A of the executive law. 45 b. At the time of registration, and upon request, the contractor or 46 subcontractor shall submit to the commissioner documentation demonstrat- 47 ing that the contractor or subcontractor has workers' compensation 48 insurance coverage for all workers as required by law, including any and 49 all declarations and information pages related to such policy which 50 shall be electronically accessible and searchable to the public, 51 provided however, that in no event shall a worker's name or other 52 personal identifying information be included in such database. This 53 information shall be made readily available to the public by the 54 [bureau] commissioner within forty-eight hours of the initial public 55 request.
A. 984 3 1 3. The contractor or subcontractor shall pay a non-refundable regis- 2 tration fee of two hundred dollars to the commissioner which shall be 3 paid to the general fund. The commissioner, through regulations, shall 4 reduce the registration fee associated with minority or women-owned 5 business enterprises in order to promote the use of such businesses on 6 covered projects. 7 4. Unless[, following notice and a hearing, the bureau] the commis- 8 sioner determines a contractor or subcontractor unfit to be registered, 9 the commissioner shall issue a certificate of registration to the 10 contractor or subcontractor upon receipt of the fee, form and documenta- 11 tion required by this section. A registration certificate shall be valid 12 for two calendar years from the date of registration. Registrations may 13 be renewed not less than [thirty] ninety days before the expiration date 14 of the immediately preceding registration. The commissioner shall 15 promulgate regulations to determine under what circumstances a contrac- 16 tor or subcontractor would be unfit to be registered pursuant to this 17 section; provided that a contractor or subcontractor shall not be deter- 18 mined to be unfit solely because a contractor or subcontractor was 19 debarred within the last [ten] eight years, unless such contractor or 20 subcontractor is currently debarred or ineligible pursuant to subdivi- 21 sion three of section two hundred twenty-b of this article or section 22 one hundred forty-one-b of the workers' compensation law or such 23 contractor or subcontractor is subject to a final administrative or 24 court order for violation of state or federal prevailing wage law which 25 has not been fully satisfied, provided further that a contractor that 26 has made payment for unpaid wages on behalf of a subcontractor shall not 27 be determined unfit solely as a result of actions of a subcontractor. 28 [The notice to a contractor initially determined by the commissioner to 29 be unfit based upon the registration application shall be in writing, 30 shall not be conclusory, and shall state the factual basis upon which 31 the determination is based] The commissioner shall, before making a 32 determination of unfitness, notify the contractor or subcontractor in 33 writing of the reasons for such proposed determination and afford the 34 contractor or subcontractor an opportunity to cure or be heard prior to 35 the determination. Such notice shall notify the contractor or subcon- 36 tractor that a request for a hearing must be made within thirty days 37 after issuance of such notification. If a hearing is requested, such 38 hearing shall be held at such time and place as the commissioner shall 39 prescribe. If the contractor or subcontractor fails to make a written 40 request for a hearing within thirty days after issuance of such notifi- 41 cation, then the notification of determination shall become the final 42 determination of the commissioner. Any documents, reports, or informa- 43 tion that form a basis for such determination shall be provided to the 44 contractor or subcontractor no less than ten days before the hearing. 45 For purposes of this subdivision, the term "unfit" shall mean a contrac- 46 tor or subcontractor who the commissioner determines to be unable to 47 lawfully adhere to contractual obligations of this article and responsi- 48 bilities including prevailing wage requirements pursuant to this arti- 49 cle. Such determination shall be based on a clearly documented history, 50 official record of past dealings, or a present demonstrable inability to 51 lawfully adhere to such obligations and responsibilities. 52 5. If the registration of a contractor or subcontractor lapses while 53 performing contracted work on a covered project, that contractor or 54 subcontractor shall not be prohibited from completing its contracted 55 work on such covered project. For a contractor or subcontractor who has 56 been determined unfit while performing contracted work on a covered
A. 984 4 1 project at the time of such determination, then the continuation of its 2 contracted work shall only continue if a monitor is appointed to oversee 3 the work completed at the sole expense of such contractor or subcontrac- 4 tor. Nothing herein shall prevent a contractor or subcontractor from 5 fulfilling contractual obligations solely based on receiving a notice of 6 proposed determination of unfitness. Such monitor must be approved by 7 the commissioner. 8 6. No contractor shall bid on a contract for public work unless [they 9 and all subcontractors listed in the bid, in addition to any subcontrac- 10 tors associated with wage and/or fringe benefit payments to employees on 11 the public work project, are] such contractor is registered pursuant to 12 this section. In the case of a covered project subject to section two 13 hundred twenty-four-a or two hundred twenty-four-d of this article, or 14 other projects that are privately owned and subject to provisions of 15 this article, contractors must register prior to commencing any work on 16 a covered project. Subcontractors must be registered prior to commenc- 17 ing any work on a covered project. Further, each contractor must submit 18 their certificate of registration [as well as all certificates of regis- 19 tration for any and all subcontractors for such contract] at the time 20 the bid is made. Applications for registration shall not be accepted as 21 a substitute for a certificate of registration for the purposes of this 22 section. [For covered projects performed under private contract, the 23 owner or developer of such project must ensure that any contractor which 24 it hires, or subcontractor that is hired, to perform work on such 25 project is registered pursuant to this section. 26 6.] 7. For covered projects as defined in section two hundred twenty- 27 four-a or two hundred twenty-four-d of this article or other projects 28 that are privately owned and subject to provisions of this article, the 29 owner or developer of such covered project must ensure that any contrac- 30 tor that is hired, or subcontractor that is hired, to perform work on 31 such project is registered pursuant to this section prior to that 32 contractor or subcontractor commencing work on the covered project for 33 which it was contracted. 34 8. a. A contractor who bids on a contract for public work knowing that 35 it is not registered, or [submits a bid with] allows a subcontractor to 36 commence work on a covered project that it knows or should have known is 37 not registered pursuant to subdivision [five] six of this section shall, 38 after notice and a hearing, be subject to a civil penalty of up to one 39 thousand dollars. For covered projects performed under private 40 contract, as defined in section two hundred twenty-four-a or two hundred 41 twenty-four-d of this article, or for other projects that are privately 42 owned and subject to the provisions of this article, an owner or devel- 43 oper who commences work with a contractor or subcontractor that it knows 44 or should have known is not registered pursuant to subdivision [five] 45 six of this section shall, after notice and hearing, be subject to a 46 civil penalty of up to one thousand dollars. A contractor or subcontrac- 47 tor who commences work on a covered project knowing that it is not 48 registered or contracts with a subcontractor that it knows or should 49 have known is not registered for work on a covered project shall, after 50 notice and hearing be subject to a civil penalty of up to one thousand 51 dollars. [Any subcontractor who commences work on any covered project 52 knowing that it is not registered shall, after notice and hearing, be 53 subject to a civil penalty of up to one thousand dollars.] 54 b. The commissioner may revoke or suspend a registration if a contrac- 55 tor or subcontractor has been finally determined to be in violation of 56 the prevailing wage requirements of this article, provided however that
A. 984 5 1 such contractor or subcontractor shall be afforded a hearing prior to 2 any revocation or suspension. 3 c. Nothing in this section shall be construed to limit or supersede 4 the authority of any state or municipal entity to enforce existing labor 5 laws, safety standards, regulations, codes or any other existing laws 6 relative to public work. 7 d. A registration pursuant to this section is not necessary for a bid 8 or work on a contract for public work and penalties pursuant to this 9 section shall not apply when a state of emergency is declared pursuant 10 to section twenty-four of the executive law, when the governor declares 11 a disaster emergency pursuant to section twenty-eight of the executive 12 law, or when the President issues a major disaster or emergency declara- 13 tion and such work arises from or is in connection with the actual or 14 impending declared emergency or disaster or pursuant to an emergency 15 construction contract, or other contract entered into due to an urgent 16 and unexpected event where public safety or the conservation of public 17 resources is at risk, as authorized by law, including but not limited to 18 the public buildings law, the state finance law, the general municipal 19 law, or the public authorities law. 20 § 2. Subdivisions 7 and 8 of section 220-i of the labor law, as added 21 by a chapter of the laws of 2022 amending the labor law relating to 22 establishing a registration system for contractors and subcontractors 23 engaged in public work and covered projects in order to better enforce 24 existing labor laws and regulations in the public works industry, as 25 proposed in legislative bills numbers S. 5994-C and A. 1338-C, are 26 amended to read as follows: 27 [7.] 9. The [department] commissioner shall establish and maintain an 28 online system to make available all registrations and disclosures 29 required by this section, except for any personally identifiable infor- 30 mation, including home address and percentages of ownership interest in 31 privately held entities. 32 [8.] 10. The [department] commissioner shall prescribe regulations 33 necessary to carry out the provisions of this section [within one 34 hundred eighty days after its effective date]. 35 § 3. Section 2 of a chapter of the laws of 2022 amending the labor law 36 relating to establishing a registration system for contractors and 37 subcontractors engaged in public work and covered projects in order to 38 better enforce existing labor laws and regulations in the public works 39 industry, as proposed in legislative bills numbers S. 5994-C and A. 40 1338-C, is amended to read as follows: 41 § 2. (a) This act shall take effect immediately, provided however, (b) 42 subdivisions one through six of section 220-i of the labor law as added 43 by section one of this act shall take effect [one year] two years after 44 such date. 45 § 4. This act shall take effect immediately; provided however that the 46 provisions of section two of this act shall take effect on the same date 47 and in the same manner as subdivision (a) of section 2 of a chapter of 48 the laws of 2022 amending the labor law relating to establishing a 49 registration system for contractors and subcontractors engaged in public 50 work and covered projects in order to better enforce existing labor laws 51 and regulations in the public works industry, as proposed in legislative 52 bills numbers S. 5994-C and A. 1338-C, takes effect; provided further 53 that the provisions of section one of this act shall take effect on the 54 same date and in the same manner as subdivision (b) of section 2 of such 55 chapter of the laws of 2022, takes effect.